After China experienced a modest recovery in fixed asset investments in the first two months of this year, the Central Government has committed to increase its investments for the nation's infrastructure and public services.

This, according to Zhao Chenxin, spokesman of the National Development and Reform Commission (NDRC), who disclosed that a total of 15 new fixed asset investment projects worth 34.1 billion yuan ($5.3 billion) have been approved this month, reported the China Daily. 

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At a recent news conference, Zhao echoed earlier comments made by Xu Shaoshi, NDRC Minister, saying, "The newly approved projects mainly improve shortcomings amid the economic restructuring process, such as waterworks construction and energy supply."

Over the past two years, the Xi Government has infused more than 5.3 trillion yuan into programs for industrial and public service development, highlighting China's efforts to attract more fixed asset investments.

In fact, government-led investment projects for this year will amount to 500 billion yuan, and is forecasted to draw in fixed asset investments worth 50 trillion yuan.

The NDRC reported that by the end of January of this year, the Central Government had already spent 1.59 trillion yuan on information and energy networks alone, while 1.22 trillion yuan was allocated for transportation systems.

Based on official data, China's fixed asset investments in the first two months of this year rose by 10.2 percent year-on-year, an increase from the 8.2 percent growth rate posted in December.

However, Li Jiao, analyst at the National Bureau of Statistics, warned that although the sector's growth is largely driven by real estate, its foundation remains shaky due to its high inventory and the increased cost of development.

For his part, Niu Li, Director of Macro-Economics at the State Information Center, explained with the downward pressures exerted on the real estate and manufacturing sectors - China's key drivers for GDP growth - a major recovery in the near term is highly unlikely.

Niu noted out that infrastructure construction projects, which are mostly government-funded and account for at least 15 percent of China's fixed asset investments, will provide incentives for local governments in the short-term and benefit the nation's economy in the long run.  

Tagschina, China Fixed Asset Investment, China economy